Planned & Organized Deficit Spending (PODS): 2nd Edition. New & Updated

By Vidur Sahgal

PODS is a book that shows the way to run an economy without taxes and without any shortages Of money!!
Our population of 1.4 billion citizens, entitles us to be ambitious and PODS can show the way to be so. The figures are huge but so is our population. With PODS the entire population of 8 billion ofthe world is an even bigger market to address. It is to be noted that PODS is universally applicable.

• Language: English
• Publisher: BooxAi
• Release date: Mar 12, 2024
• ISBN: 9798893830583

Book preview

1. Introduction

Planned & Organized Deficit Spending (PODS) is an evolution of the Distributed Equilibrium Allowable Deficit Spending theory (DEADS). It proposes a strategic approach to deficit spending that could potentially eliminate the need for taxes and mitigate capital shortages and market fluctuations, such as inflation or deflation. In contrast to DEADS, where 'allowable' referred to resource availability beyond monetary considerations, PODS places a central focus on the resources produced and available for an economy's population within a given period. The critical goal is to gradually build up a sustainable saturation level of supply for all products, services, and agricultural goods in the economy to all its economic units. Under PODS, the concept of 'saturation' becomes paramount. It suggests that over time, any product introduced into the economy can achieve full and sustainable supply without disruptions, making saturation the ultimate target. An essential aspect of PODS is that it won't lead to the displacement of current personnel. On the contrary, the economic and commerce sectors are expected to require millions of additional personnel, thereby creating more employment opportunities. Moreover, these new roles would demand minimal training in the theory, making the transition relatively smooth and inclusive.

This brief is specific to India, but PODS can be used globally. I’ve written this with India in mind because I’d preferably like to see our backyard in order, before attempting to put others in order. India still has 900 million people who live in abject poverty. These citizens must be addressed first before we look beyond our international borders. These also present the greatest business/commercial opportunity in the history of the free world. There are approximately 900 million potential consumers/producers waiting to be activated, not to mention the approximately 4-500 million existing consumers/producers, as reported. Populations should be considered as valuable assets within large markets, comprising both manual labour (for example our excess labour can be sent to rebuild Ukraine provided that their war with Russia ends) and knowledge- based contributions besides the brain power which could be harnessed by the individual given the proper knowledge environment. These populations engage in simultaneous production and consumption activities. However, it's important to note that recognizing populations as assets does not imply an endorsement of uncontrolled or unsustainable population growth.

Today: If I, as an economic unit, want to produce something, I need money. If I want to consume something, I need money. If I do not have money, I really am not a producer or a consumer, in the real tangible sense. But if I have access to money, in a controlled and efficient manner, I, as an economic unit, would produce and consume, adding to the bottom line...The GDP, the entire population (1.4 billion) of the economy, could then become an economy of producers & consumers, perfectly coordinated, in such a manner, so as to produce no inflation and at the same time achieve market equilibrium for every pre-identified product(s), agro(s) & service(s). Equilibrium here and hereafter in this book means market saturation or full supply to the market. It does not mean where the demand and supply curves intersect each other. Agro means a vegetable, fruit, and includes horticulture, herbs, and commercial, natural, and agricultural produce forms. A service is an act or use that a consumer, business, or government is willing to pay for. Work done by barbers, doctors, lawyers, mechanics, banks, insurance companies, and others is an example.

In market economics, the goal is to meet the demand for specific products, agriculture, or services by ensuring an optimal combination of quality and pricing. This involves supplying precisely the quantity required and offering the right number of choices for each identified product, agro, or service. Even deflation can be acceptable because it increases real income, even if wages remain constant. It's crucial to recognize that one of the most formidable barriers in this process is money. Money plays a pivotal role as both the means to create and consume goods and services. If an individual lacks the necessary funds to manufacture a TV, they cannot do so. Similarly, if someone wants to purchase a TV but lacks the funds, they are unable to make the purchase. Therefore, the absence of money in an economy can be likened to arthritis in a champion golfer, hindering both production and consumption.

Do note, however, that one does not have to produce, but must consume. This is how nature made us. And as a natural consumer, arguably the state should provide a good standard of easy access to the basics at least, with luxuries and desires being met by economic activity, also provided by the state. For example, food can be given free at a state restaurant, but if one wants to buy a TV, then one would have to work to earn/ buy the TV... or work at a TV manufacturing factory.

In the framework of Planned & Organized Deficit Spending (PODS), digital money is strategically channeled into the Demand (I prefer calling Demand: Request.) and Supply Pipelines. The government administrators overseeing PODS ensure that for each pre-identified product, agricultural item, or service, one unit or more of money injected into the Demand channel corresponding to the production of one unit or more of actual physical Supply. This demand-supply match must be physically made for each pre-identified product, agro, or service to maintain market equilibrium and work towards achieving sustainable saturation. Assuming the Demand/Supply lag away, the number of monies distributed for a match by actual physical supply, or production of pre-identified products or services, can be magnified many times over, if such Demand Supply matches continue all the way to market equilibrium, and eventually full saturation/supply for the demand of any pre-identified product, agro or service. This assumption of assuming the supply/demand lag is important, in that for example, if the government of this economy was to decide that every economic unit should be able to buy a TV (now a state/government pre-identified desirable product for every economic unit), and assuming the sum of economic unit is 1.4 billion people, then it would take time to set up the production capabilities to manufacture 1.4 billion TVs. At the same time, it would also take time to provide employment to the economic unit (One person in this case) so they can earn enough through various local currency economic activities, possibly including government jobs, to afford their desired TV.

PODS is theoretically robust and highly practical, requiring only minor adjustments, adjustments in the current economic structure, to bring it into existence.

The broad skeletal framework of PODS is as follows:

The described economy, under the control of a central organization, manages its currency through electronic digital money issuance. The government acts as the custodian and distributor of these funds and their electronic transactions. It's essential to emphasize that these funds originate solely from the non-animate E-digital electronic platform, which possesses the capability to print and issue both paper and digital currency. This platform is created and operated by the government solely for economic purposes. It should be clear from the beginning that these capitals/monies are not government-owned but public-owned. The government comes and goes, but it is the public that decides the government, at least in what is supposedly Democratic India. The amounts of money that are available from this Digital Mint (DM) are infinite and are a function of how much the government in charge is willing to spend: spend in a planned or organized manner, the manner of which is explained later. It is to be noted that Modern Monetary Systems are totally electronic with electronic digital credits and debits operating from one’s cell phone to each other’s (as an example). So, you can pay electro digitally from your own cell phone to the bookstore owner’s cell phone and pay for this book.

Do note here, that the government, can, in this case, pay itself amounts that could usher in a Zero Corruption form of governance. The Government can pay its Bureaucracy, Public Sector Government Companies, Organizations & Departments. Not to forget the politicians also. One of the reasons corruptions exists is an inherent bottleneck in the relevant economy. You will note that surplus economies tend to have no or very little corruption, while shortage economies have corruption.

50 Desirables/Necessities, 200 Economic Units/People: In this scenario, there is an insufficient supply of 50 desirables/necessities to meet the demands of 200 economic units/people. This situation creates intense competition for these limited resources, which can lead to corrupt practices as individuals or entities try to gain an advantage or secure a share of these resources. Corruption often arises from the imbalance between supply and demand, where those with more resources or influence may gain an unfair advantage.

50 Desirables/Necessities, 40 Economic Units/People: In contrast, when there are only 50 desirables/necessities but a smaller population of 40 economic units/people, the situation is different. There is a sufficient supply to meet the needs of all economic units, with 10 resources left over. In this case, there is no incentive for corruption as everyone can access what they need without competing or resorting to unethical practices. Additionally, the surplus of 10 desirables/necessities can be potentially exported to benefit the economy further.

To eradicate corruption in economies, addressing supply and demand bottlenecks for essential goods and services is vital. Additionally, surplus economies engaging in corruption should face international isolation and be labelled as rogue states by the global community.

Accordingly, the initial formula for PODS is explained in Box 1. PODS FLOWCHART:

Figure 1: PODS Flow Chart

Explanation: The Government instructs and issues digital currency through the Enabler Banks which supply this to the producers and consumers as per PODS Rules & Regulations. At the same time, the auditors are informed, who see to it that digital payments to personnel are made and ensure that equal demand and supply distribution takes place, while economic activity data